Life Insurance When Travelling: What You Need to Know
We’ve all heard the phrase that ‘travel broadens the mind’, and there is no denying that the world is a vast, fascinating place. A sense of adventure drives many to pack their things and set off to see what the world has to offer, but how does this decision affect our financial agreements back home, specifically life insurance policies? This article provides everything you need to understand the effects of travelling overseas on existing life insurance policies and any factors you need to bear in mind if you are aiming to source a new policy.
Life insurance isn’t something that comes to mind when travelling. When you are heading off on a short trip or a long one with the family for months, there is so much to think about like where to visit, where to stay and what airline to use! The team at QLD Travel like to ensure our readers think about all possibilities when you are preparing for a trip to ensure you have all bases covered to ensure a smooth and fun trip. We all think and book travel insurance but here is a few other things to think about before heading off on your big trip!
Does Life Insurance Pay Out if the Policyholder Dies Overseas?
The short answer is that, yes, in most cases, life insurance will pay out if the insured person dies overseas. However, there are some differences and essential considerations to be aware of, including:
- Individual policy terms
The specific terms and conditions of each life insurance policy determine its coverage. Scrutinising the policy and speaking with the insurer before purchasing (or embarking on your travels in the case of an existing policy) is critical to understanding any stated limitations or exclusions that apply while the holder is overseas.
- Contestability period
The first two years of any life insurance policy are known as the ‘contestability period’. If the policyholder expires during this time, the insurance company may decide to investigate the circumstances of the death. They are legally entitled to review the original policy application and subsequent claim for any misrepresentations. This is an option they retain with all policies still in the contestability period but may be more likely if the person passes away overseas.
- Proof of death
Beneficiaries named in the life insurance policy of a holder who dies overseas may be asked to provide substantial proof of their death. Although all policies require a death certificate, those issued by other countries may not be deemed reliable or sufficient, and additional documentation and proof may be required. This will assuredly delay the payment process, causing additional stress and upset for the grieving family.
- Caveats and exclusions
Some life insurance policies have stated exclusions applying to specific countries or activities undertaken overseas. Checking the policy carefully for any such exclusions beforehand is vital. If motorcycle riding negates the policy and the holder is killed in this way, the life insurance providers will almost certainly deny the claim.
- Repatriation costs
Most life insurance policies do not cover repatriating the holder’s body. This is considered the realm of travel insurance and having a comprehensive policy to cover medical expenses and complement your life insurance when travelling is an excellent idea.
Most Dangerous Countries for Australian Tourists
The Independent recently published a ranking of the most dangerous countries for tourists in 2025, based on factors such as health risks, security threats, and climate change. Australians planning overseas trips should be aware of these heightened risks to ensure safer travels.
South Sudan
South Sudan ranks as the most dangerous country due to persistent ethnic and political conflicts, widespread famine, and severe humanitarian crises. Ongoing violence has displaced thousands, with poverty driving increased crime and extremism.
Somalia
Somalia remains hazardous, notably because of piracy in the Somali Basin. Attacks on international shipping pose serious maritime security threats. The situation is compounded by internal conflicts, ongoing terrorism, and chronic political instability, making it a particularly risky destination for travellers.
Libya
In Libya, instability continues to prevail following the fall of Muammar Gaddafi’s regime. Fragmented power structures, heavily armed militias, and frequent terrorist attacks make it one of Africa’s most dangerous countries for tourists.
Yemen
Yemen is experiencing a dire humanitarian emergency due to prolonged conflict between government forces and rebel groups. Extensive damage to infrastructure, health services, and public utilities has led to widespread famine, disease, and insecurity, posing extreme risks for visitors.
Syria
Syria remains highly dangerous after years of civil war involving multiple factions and external forces. Continued violence, extensive destruction, mass displacement, and active terrorist groups such as Islamic State have created severe risks for anyone entering the region.
Iraq
Iraq faces significant security challenges, particularly due to ongoing terrorist threats. Recent events, including the withdrawal of Iraqi forces from Syria, have increased the likelihood of returning militant fighters, further destabilising the country and making travel perilous.
Afghanistan
Afghanistan continues to be extremely dangerous due to persistent political turmoil and terrorism. Since the Taliban takeover, human rights abuses, economic hardship, widespread corruption, and poor security have increased risks significantly for locals and tourists alike.
Ukraine
Ukraine remains unstable due to the ongoing military conflict resulting from Russian aggression, especially in the eastern regions. Prolonged fighting has severely disrupted social stability, infrastructure, and overall security, posing significant dangers for travellers.
Before planning international travel, Australians should carefully review current travel advisories, arrange suitable travel insurance, and thoroughly prepare for potential risks. This approach ensures safer and more enjoyable travel experiences despite global instability.
Life Insurance When Travelling: A Critical Financial Decision
Providing financial security and stability for our loved ones and dependents in the event of our untimely death is one of the most responsible steps we can take as conscientious individuals.
Luckily, sourcing, researching, and purchasing TAL life insurance is more convenient and straightforward than ever. With so much information at our fingertips, all it takes is enough time, focus, and the means to afford the premiums. However, when introducing the element of travel into the equation, reviewing the policy details carefully and consulting with the insurance provider is highly advisable.
When you purchase any type of insurance, we have all read stories about people not reading their policies properly and doing their research. Make sure that you do and save yourself the potential for any future issues.
